Q2 2025 Evertec Inc Earnings Call Transcript
Key Points
- Evertec Inc (EVTC) reported an 8% increase in revenue for the second quarter, reaching $230 million, with constant currency revenue growing by 10%.
- Adjusted EBITDA increased by 8% year over year to $93 million, with a margin of 40.3%, aligning with company expectations.
- The company returned cash to shareholders through $6.4 million in dividends and $3.7 million in share repurchases, maintaining strong liquidity at approximately $485 million.
- Revenue in Latin America increased by 15% year over year, or 20% on a constant currency basis, driven by organic growth and contributions from recent acquisitions.
- The Board of Directors approved a refresh of the share repurchase program, authorizing up to $150 million in repurchases through December 31, 2026.
- Adjusted EBITDA margin decreased by 30 basis points from the previous year due to last year's margin being positively impacted by one-time revenues.
- Higher tax expenses and operating depreciation and amortization partially offset the growth in adjusted EBITDA.
- The Business Solutions segment saw a 13% decrease in adjusted EBITDA, with margins down 750 basis points due to the absence of a highly accretive, non-recurring project from the prior year.
- The company anticipates a reset in overall margin in the fourth quarter due to a 10% discount to Popular MSA services, impacting revenue and adjusted EBITDA.
- Foreign currency headwinds, particularly from the Brazilian reais, impacted constant currency revenue growth.
Hi, there. Good day and welcome to the Evertec second-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Beatriz Brown from Investor Relations. Please go ahead.
Thank you, and good afternoon. With me today are Mac Schuessler, our President and Chief Executive Officer; and Joaquin Castrillo, our Chief Financial Officer. Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic SEC report.
During today's call, management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as constant currency revenue, adjusted EBITDA, adjusted net income, adjusted earnings per common share, and constant currency adjusted earnings per common share.
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